This invention relates to improvements in methods for use in meat animal slaughtering processing plants and more particularly to a method for use in a hog slaughtering plant which optimizes the value of the resulting cuts made from each carcass of a series or plurality of carcasses (the number of carcasses in a purchased lot or processed in a given period of time, such as a day) under existing market conditions as well as providing management with a tool by which each animal or hog can be evaluated in terms of profit or loss based on the total operation (the number of carcasses processed in the given period of time) from purchase of the animal to sale of the resulting products.
The process described in U.S. Pat. No. 3,940,998, includes making physical measurements of the ham circumference, body length, fat depth and a subjective evaluation of muscle quality. These are utilized to provide data to a computer which in accordance with the algorithm set forth, predicts the weight or range of weights of the ham/loin cuts which can be produced and issues instructions as to the point with respect to the aitch bone for the butcher to cut each individual hog carcass to optimize the value under existing market price conditions of the resulting ham/loin cut from each individual hog carcass without regard to the other carcasses to be processed in a given period of time, such as a day. The subject matter taught in the U.S. patent required that the data be collected at the time the carcass, split into halves, left the cooler and entered the cutting department. The physical data, i.e. the weight, ham circumference, body length, fat depth measurements as well as the subjective muscle quality score were all entered as the carcass proceeded toward the cutting table. The data fed to the computer was operated on by the computer in accordance with the algorithm and results in cutting instructions displayed to a butcher in terms of a digital read out giving the distance from the aitch bone at which a scribe mark was to be placed on the carcass, which acted as an instruction to the butcher as to precisely where to make the cut to divide the ham from the loin.
Subsequent improvements, as described in commonly assigned copending application Ser. No. 714,875, filed Aug. 16, 1976 of C. H. Wallace, now U.S. Pat. No. 4,118,777, issued Oct. 3, 1978, resulted in utilizing the computer's solution to position a light line or a shadow on each carcass (in addition to the visual digital display) which delineates the point to which the butcher was to make the desired cut to optimize the ham/loin as well as to optimize the value of the loin/shoulder cut.
In practice, it has been proven that the subject matter as contained in U.S. Pat. No. 3,940,998 and in the aforesaid application Ser. No. 714,875 have resulted in considerable improvement in the profitability of hog processing plants utilizing the subject matter taught therein.
As pointed out in the earlier patent and application, the value which can be obtained from each individual carcass requires that each carcass, specifically hogs, as described herein, must be considered, not as a group in purchase lots in terms of weights and quality grades, but each hog carcass must be considered individually. The yield potential from each carcass should be analyzed in accordance with the relative value of the various cuts based on current market values, giving due consideration to the market value of the various weight ranges of each primal cut and to the fact that the yield potential of most can be varied by the point of demarcation and still stay within customary trade practice. Furthermore, many processing plants have a further demarcation in the products which they produce which arises from a variety of trim instructions so that either a "commodity" trim, which permissibly contains a considerable amount of fat, or a leaner trim (called "Gwaltney" herein) which contains considerably less fat can be produced from the same carcass and even certain portions of an individual carcass can be broken into the primal cuts, some of which can be trimmed to produce "commodity" cuts and others can be trimmed to produce the "lean", "specialty" cuts. The matter is further compounded by the fact that certain cuts may be sold bone-in and other cuts may be sold bone-out or boneless and again the primal cuts produced from each carcass may vary as to how they are trimmed both for the bone-in and boneless cuts.
As a further desirable goal it is important for the management of a processing plant to be able to determine to the extent possible, the profit and loss which results from each carcass. Therefore, if it is possible by experience to determine the relative profit or loss with respect to each carcass, it is possible then to tailor the buying procedures in such a manner as to achieve maximum profit with respect to each carcass. By being able to determine, as taught by the method of this invention, the results produced by each individual hog carcass being cut up and sold, it is possible to revise the standard procedures used in the industry with respect to hog buying discounts for both grade and yield to reflect conditions in the market for all the products produced.
Many processing plants currently use, as a management tool, a hog grade and yield report. As currently practiced in the industry this is essentially a comparison of the weight and grade of the hogs purchased and the prices paid, and the total yield value based on the daily top of the market prices for certain market centers for number one grade 200 lb. to 240 lb. weight range hogs. As an example, one hog processing plant utilizes a following type of discount schedule.
______________________________________ WEIGHT RANGE AMOUNT OF DISCOUNT ______________________________________ 0/160# $10.00 per cwt discount from 200/240 161/180 5.00 180/190 1.00 190/200 .50 200/240 .00 240/250 .50 250/260 1.00 260/270 2.00 270/300 5.00 Heavier Weights N/A (not applicable) GRADE DISCOUNTS STARTING WITH NO. 1 TOP GRADE $ .00 No. 1 Top of Market if 200/240# .85 No. 2 2.00 No. 3 3.00 No. 4 5.00 Mutilated ______________________________________
It will be noted that the discount schedule creates the possibility of 45 different prices on a given day and in practice, on an average day 30 different prices are used.
Hog cut out losses are the most serious problems which have plagued the hog killing process for the industry. While the discount policy varies from plant to plant, it is relatively standard in the industry. The prices ignore the prices of the primal cuts which will be produced when the various hogs in the weight/grade ranges are cut out. The provision market is extremely volatile with both daily and seasonal trends. Heavy hams from heavy hogs frequently sell at the same price as hams from the 200 to 240 lb. hogs. The most desirable slicing bellies are produced from 240 to 260 lb. hogs and weigh between 12 to 14 lbs. They are priced at a higher price than 8 to 10 and 10 to 12 lb. pork bellies. On many occasions, the 14 and down pound loins and 14 to 17 pound loins command the same price. By utilizing data produced, as a result of the subject matter of this invention, a thorough analysis of individual hog profit or loss results establishes that frequently there is a profit on 240 to 250 lb hogs and 250 to 260 lb hogs and a loss on 200 to 240 lb. hogs. While it is unlikely that the following of the methods as taught in this application will result in altering the industry buying practices, it is an object of this invention to utilize the existing flaws in the system to minimize the losses and, to the extent possible, optimize profits.
Basically current grade discounts are more realistic as they recognize quality and fat. The subject matter of this invention provides an opportunity to improve upon cut out results since it is now possible to treat differently an extremely lean hog which will have a belly so thin that it will not produce sliced bacon. It would be impossible to calculate individual hog cut out results on the range and volume of hogs slaughtered per year without utilizing the techniques as taught by the subject matter of this invention.
As has been pointed out in the U.S. Patent No. 3,940,998, the value of hog cuts must be calculated daily utilizing current market values for each cut. The market value of each cut in turn is based on the cut weight and all cuts within a given weight range have the same market value. Accordingly, the desired weight of each of the primal cuts and each of the various trims whether boneless or bone-in should be determined to produce the maximum return based on current market conditions by establishing the exact points of demarcation between each primal cut; determining whether the primal cut should be a "commodity" trim or "Gwaltney" trim; and by determining whether the cut should be sold boneless or bone-in. To a considerable extent each day's slaughter which will be cut the following day or within a day or so must satisfy existing market demand. Thus, the demand on any given day that the cut-up product is sold will vary and in fact may even vary during the day's cutting operations, depending upon sales conditions.